The Consumption Function Becomes Flatter If

question 98

Multiple Choice

The consumption function becomes flatter if:

• A)the average propensity to spend increases.
• B)the marginal propensity to spend increases.
• C)the marginal propensity to save increases.
• D)the autonomous consumption increases.
• E)the autonomous consumption decreases.

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Definitions:

Selective Attention

The focusing of conscious awareness on a particular stimulus while ignoring others, essential in processing information efficiently.

Self-fulfilling Prophecy

A psychological phenomenon in which a person's or group's belief or expectation brings about its own realization or outcome.

Stereotyping

Making generalized assumptions about individuals or groups based on perceived characteristics, often leading to prejudiced attitudes or actions.

Social Identity

The part of an individual’s self-concept derived from their perceived membership in social groups, shaping their behavior and attitudes.